The seven biggest mistakes made in divorce, and how to avoid them. 

Black Modern Real Estate Instagram Story (1280 x 720 px)The seven biggest mistakes made in divorce, and how to avoid them.

Please consult with your attorney. Consult with your tax accountant. Stay to the end, stay to the end, stay to the end because we’re going to give you a couple of free tools that can make you and save you tens of thousands of dollars.

Number one is people don’t realize that California and this is where we are. California is a community property state. What does that mean? I’ll tell you what it means. It means anything you acquire: a 16-unit apartment building, a Tesla, even if it’s all your money, when you get it after you’re married, your spouse has a half interest in it. So you may want to talk to an accountant, speak to a lawyer, prenup, whatever, take care of that, so you may not want them to own the Tesla or the 16-unit building 50%. So number one, California is a community property state. Beware.

Number two: Almost everybody falls for this one. A quitclaim gets me free of responsibility for the property. I hear so many people say, “My spouse ruined my credit.” This point is crucial. It makes sense. You are using a quitclaim deed to remove your responsibility to the property or title but not to the loan. Title and the loan are two separate things. You may be off the title, but you’re still responsible for the loan. So what do you do? You’re going to have to refinance or sell. Mistake number two is thinking a quitclaim deed is going to relieve your responsibilities. Not at all. Common mistake.

Number three, it’s the same thing with homeowner’s insurance. You want to make sure you are one of the beneficiaries. Meaning if the house burns down, they don’t write a million-dollar check and give it to your spouse and nothing to you. You want them to give two checks for half a million each. So please make sure the insurance is up to date, make sure it’s paid, make sure it’s existing, and make sure that you are listed as a beneficiary.

Mistake number four is, let’s say we decide to keep the house. You move, I’ll stay. Let’s try to figure it out evenly. There’s a lot to consider. They’re not doing anything. You have to make the mortgage payment. You have to pay the taxes. You have to pay the insurance, and you have to maintain the property. I managed a home for a lot of years. We had to redo the driveway. I mean, a lot of years, the rain gutters, the garage door. We had to redo the pool lining. It went on and on. A new heater we put in over the years. I mean, you could, you could be responsible for $10,000, $20,000, $30,000, $40,000. So you need to figure that out or go ahead and sell. It makes it a whole lot easier.

Mistake number five is selling your home after you’re divorced for tax purposes. You want to sell your home before you get divorced for tax purposes because there’s a $500,000 exemption. It means you don’t have to pay taxes on that $500,000 of profit, nothing. But guess what? You get divorced, that 500,000 gets cut in half. Mistake number five, selling your home after the divorce. Not good tax-wise.

Mistake number six, and this is a little-known fact. I just learned it myself. You can get a temporary restraining order, meaning your spouse can’t refinance or sell the home when you’re not looking. I don’t want that to happen to you. Talk to your lawyer and get a temporary restraining order or property restraining order, so they can’t do that.

Mistake number seven: If you do settle the property issues, your divorce will take about 12 months. But if you don’t, it’s going to take probably 16, 17, 18 months. So if you want to be done with it six, seven, eight months sooner, go ahead and settle the property. Get the property sold so it’s out of the way.

Communication

CommunicationIt seems kind of cliche to say a good relationship must communicate to be successful. I’ve experienced in life where I have been reluctant to say what is on my mind. The shyness, in my opinion is a product of my past. I’m confident that for most all of us, there have been times when as children we would share something and were scolded, put, down, and even yelled at for saying what was on our mind, not meaning any harm in what it was we were saying.

I was maybe ten years old, my family was on vacation in Indiana. We were visiting a family that was extremely close to our parents. In Indiana, they have basements, something that homes in California don’t have. This home had a wonderful game room downstairs, the room had a pool and table tennis table. For a ten-year old it was the best room ever! The basement had rather plain wooden stairs. In my mind, I decided to give the room and our host family a compliment. I said, “these stairs don’t give the room justice.” My brother dan who was 19, (nine years older than me) quickly and strongly shushed me. I never forgot that. To this day I feel, I said something terribly wrong. I was happy and wanting to add a compliment. Suddenly rather than giving a compliment, I had done something horribly wrong and insulting to my parents best friends. To this day I’m reluctant to say something without considering how it might be received, and would I get in trouble for saying whatever it is I’m considering saying.LukeSign_18x24_Tag1_preview

I have developed a fear of fully expressing myself. I have a fear that I’ll be rejected for stating my thoughts, opinions, and beliefs. I have a fear of rejection.

If you are shopping for a home, a fear of expressing your thoughts, opinions, and beliefs is a recipe for disaster. You may end up buying the wrong house! You may waste time looking for the type of property you have no intention of buying. You may be opening yourself up for relationship problems.

When you experience and use the Crystallization process you won’t have this problem. The Crystallization process is a process that ALL my clients go through prior to seriously looking for their dream home. The process does exactly what the name implies, it makes it crystal clear what type of home you are looking for. At the end of the process, you and your significant other will be clear on what you BOTH are looking for in a home. What needs to be shared, will be shared. The inclination to hold back will be broken, and clear communication of what type of home you desire will be communicated.

With clear communication, you won’t waste time looking for the wrong type of property. You will avoid the catastrophic possibility of buying the wrong house. And, you will not have unclear communication be a catalyst for arguments and more with your loved ones. You will find and buy the perfect home for both of you.

For more information on the Crystallization process, please see the video on the subject in this blog or widow sections of this website, dklhomes.com, or call, text, or email to schedule a Buyer Empowerment consultation.

David Kline Lovett

NextHome First Choice (your choice) Realty

I’m Here For You!

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Your Word

To me, there is not a whole lot more important than your word! In business and real estate as it is in any relationship it is of upmost importance if one desires to keep that relationship and have it be workable.

BridgeYour word in my world is more than just saying or doing what you said you would do. Why not go even farther than to honor your word? Honoring your word is a matter of integrity. Integrity is a structure like the structure of the engineering of a bridge. If the integrity or structure of a bridge is not whole, eventually the bridge will no longer work.

How can one go further with your integrity or word, by following the tenants below:

I learned the following from a personal and professional development and training company called Landmark. (see the page under interests of David)

  1. You can do what you said you would do. Honor your word.LukeSign_18x24_Tag1_preview
  2. Do what it is you know to do.
  3. You can do what one would expect you to do.
  4. Do what needs to be done.
  5. You can do complete work.

This is all above and beyond what one may think is good enough. What if one lived in a world where good enough, wasn’t good enough? What if one lived in a world where their word was more than that? Would real estate be a whole lot easier? Would entering into a relationship with a real estate agent be more productive, simpler, and easy? Would there be more closed sales? Would life be more the way it ought to be?

I say YES.

David Kline Lovett NextHome First Choice (your choice) Realty

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